Time Warner Cable 2012 Annual Report Download - page 113

TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Pretax amounts recognized in the consolidated balance sheet as of December 31, 2012 and 2011 consisted of (in
millions):
December 31,
2012 2011
Current liability .................................................................$ (5) $ (4)
Noncurrent liability .............................................................. (204) (46)
Total amounts recognized in liabilities ...............................................$ (209) $ (50)
Accumulated other comprehensive loss:
Net actuarial loss ................................................................$ (1,155) $ (890)
Prior service cost ................................................................ (1) (1)
Total amounts recognized in TWC shareholders’ equity .................................
$ (1,156) $ (891)
The components of net periodic benefit costs for the years ended December 31, 2012, 2011 and 2010 were as follows (in
millions):
Year Ended December 31,
2012 2011 2010
Service cost ........................................................$ 169 $ 132 $ 115
Interest cost ........................................................ 131 114 100
Expected return on plan assets ......................................... (176) (150) (127)
Amounts amortized .................................................. 59 27 29
Net periodic benefit costs .............................................
$ 183 $ 123 $ 117
The estimated amounts that will be amortized from accumulated other comprehensive loss, net, into net periodic benefit
costs in 2013 include an actuarial loss of $77 million.
Weighted-average assumptions used to determine benefit obligations as of December 31, 2012, 2011 and 2010 were as
follows:
2012 2011 2010
Discount rate ....................................................... 4.31% 5.21% 5.90%
Rate of compensation increase ......................................... 4.75% 5.25% 5.25%
The discount rate used to determine benefit obligations was determined by the matching of plan liability cash flows to a
portfolio of bonds individually selected from a large population of high-quality corporate bonds.
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2012, 2011
and 2010 were as follows:
2012 2011 2010
Expected long-term return on plan assets ................................. 7.75% 8.00% 8.00%
Discount rate ....................................................... 5.21% 5.90% 6.16%
Rate of compensation increase ......................................... 5.25% 5.25% 5.25%
In 2012 and 2011, the discount rate used to determine net periodic benefit costs was determined by the matching of plan
liability cash flows to a portfolio of bonds individually selected from a large population of high-quality corporate bonds. In
2010, the discount rate was determined by the matching of plan liability cash flows to a pension yield curve constructed of a
large population of high-quality corporate bonds.
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